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SB 5194

Concerning state general obligation bonds and related accounts.

2025-2026 Regular Session Introduced by Mike Chapman and 4 co-sponsors

Authorize general obligation bonds up to $4.687B to fund capital projects, with proceeds and debt service managed by the State Treasurer and allocated to designated accounts.

Effective date 5/20/2025.
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Bill Summary · SB 5194

SB 5194 — Summary: State general obligation bonds and related accounts

Effective date: 05/20/2025 (bill contains an emergency clause and took effect immediately upon enactment)
Chapter: 415, 2025 Laws

Main purpose

Authorize the State Finance Committee (SFC) to issue general obligation (GO) bonds to provide funding for capital projects authorized in the 2023–25 and 2025–27 omnibus capital and operating appropriations acts (and future biennia), and to set the account transfers and debt‑service procedures for those bonds.

Key provisions / changes

  • Authorizes issuance of GO bonds up to $4,686,979,000 to finance projects and related issuance costs. Bonds may be sold at prices determined by the SFC.
  • Proceeds from bond sales are deposited to the State Building Construction Account, and then transferred as specified:
    • $4,123,420,000 remains in the State Building Construction Account.
    • $563,559,000 is deposited to the State Taxable Building Construction Account.
  • Grants the State Treasurer (on behalf of the SFC) flexibility to:
    • Issue a larger or smaller portion of the authorization as taxable bonds if necessary for IRS compliance or to reduce financing costs.
    • Move proceeds between taxable and nontaxable accounts as allowed, provided written notice is given to the OFM director when such adjustments are made.
  • Designated transfers: Treasurer shall transfer proceeds (from the Building Construction Account) into specific accounts as needed to support authorized expenditures, including:
    • Outdoor Recreation Account
    • Habitat Conservation Account
    • Farm and Forest Account
    • Ruth LeCocq Kagi early learning facilities development account (and taxable proceeds to the related revolving account)
  • Debt‑service payment rules:
    • Debt‑limit General Fund Bond Retirement Account is used to pay principal and interest on these bonds.
    • SFC must certify annual amounts needed by June 30 each year.
    • On each bond payment date, the State Treasurer withdraws certified amounts from general state revenues and deposits them into the bond retirement account.
  • Bond form and enforcement:
    • Bonds are general obligations pledging the state’s full faith and credit and contain an unconditional promise to pay.
    • Bondholders may seek mandamus or other judicial relief to compel payment/transfer of funds.
  • Administrative / legal:
    • Provisions are added to chapter 43.100A RCW.
    • Proceeds are administered by the Office of Financial Management (OFM) and may be spent only after legislative appropriation.
    • Clause preserving other legislative means of raising debt service revenue.
    • Severability provision included.

Who is affected

  • State Finance Committee (Governor, Lieutenant Governor, State Treasurer): authority to issue bonds and certify debt service.
  • State Treasurer: account transfers, bond sales, and debt‑service transfers.
  • Office of Financial Management: administration of proceeds and notice of taxable/nontaxable issuance.
  • State accounts named above (outdoor recreation, habitat conservation, farm & forest, early learning accounts): recipients of bond proceeds to fund authorized projects.
  • State taxpayers (indirectly): GO bonds are repaid from the State General Fund (general revenues), implicating future appropriations for debt service.

Fiscal and procedural notes

  • Net authorization in final enrolled version: $4,686,979,000 — reduced by $213,643,000 from an earlier version (as reflected in the House amendment).
  • Bonds cannot be offered for sale until the Legislature has appropriated the net proceeds.
  • Bill passed both chambers unanimously (Senate 47-0; House 98-0) and was delivered to and signed by the Governor on 05/20/2025.
  • No separate appropriation or project list is contained in this bill; it implements financing authority for projects already authorized in the capital budgets.

Compiled from official sources — confirm details with the bill’s official record.

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